Skip to main content
February 17, 2025
Question

DCAP and child credit

  • February 17, 2025
  • 1 reply
  • 0 views

I used DCAP this year to pay my daughter’s grandmother for childcare. My question is do I need to report her information on my taxes even if I don’t claim the child care credit? If I have to report it can her grandmother report deductions for all the expenses she incurred while watching my daughter since she used most of the money I gave her on activities and necessities? 

1 reply

February 17, 2025

Yes you will need to report her information on the Form 2441. Otherwise, if you don't report the expenses and provider details, your benefits will be added back to your income.

 

If she was running a business as a child care provider, she can deduct any necessary expenses on her return to reduce her income.